The Bangladesh Bank (BB) has formed a new department named Credit Guarantee Department as part of expanding its activities relating to providing credit guarantee facilities to small firms, especially the cottage, micro and small entities.
Many such firms lack access to banking sector and are deprived of getting credit facilities from formal financial institutions.
The issue came up during the first wave of Covid-19 pandemic - when most of the small firms had failed to avail of the government-sponsored low-cost loan facilities.
The BB formed a Credit Guarantee Scheme Unit to handle the issue, but formation of the department would pave the way for expanding the activities, said officials.
Monoj Kumar Howlader, director of the newly-formed department, issued a letter on formation of the department.
So far eleven circulars have been issued on credit guarantee, and from now on the department would deal with all such circulars.
The BB now has 60 departments, units, cells, and bureaus.
